business
California insurers agree to hold off on rate hikes
NEWS IN BRIEF — Posted Feb. 7, 2011
Aetna, UnitedHealth Group and Anthem Blue Cross of California have agreed to put off pending rate increases in California for at least two months as the state's new insurance commissioner reviews their filings.
The insurance department announced Jan. 27 that the companies agreed to the delay, as requested by Commissioner Dave Jones. He does not have authority to accept or deny the rate increases. However, he can review them to make sure they comply with medical spending minimums. Blue Shield declined to delay its pending rate increase, but it said it would hire an independent actuary to review its most recent filing.
The state's Office of Administrative Law approved an emergency regulation Jan. 25 making the state's minimum medical-loss ratio 80%, in line with the new minimum specified under the federal Patient Protection and Affordable Care Act. That means 80% of premium dollars must be spent on health care. Jones, a Democrat, wanted to ensure that the rules stayed in place in California even if Republicans in Congress repealed the federal rule.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2011/02/07/bibf0207.htm.
